Innoventive Industries Ltd, the Pune-based multi-product engineering company, has geared up for its Rs 219.58 crores initial public offer (IPO), which opens today. The issue will open from April 26 to April 29. The issue will close on 28th April for qualified institutional buyers and for retail investors it will close on 29th April, 2011.
The funds, raised through IPO, will be used to expand the production capacity at the company's manufacturing facility at Pimple Jagtap in Pune for the manufacturing of precision tubes and other components, repayment of loans and general expenditure. Rs 163 crores will be utilised for expansion of production capacity and Rs 50 crores for repayment of debts, sources told Business Standard.
Innoventive Industries is engaged in the manufacturing and sale of precision steel tubes, tubular components, auto components, machined components and other steel products, which find application in diverse industrial sectors such as transportation, oil & gas, power farm equipment's and general engineering. The company has six manufacturing facilities located across Pune and Silvassa. The company sells its products in the domestic as well as in export markets.
The company has over 700 clients worldwide, including major clients like Bajaj Auto Ltd, Salem Steel North America, LLC, Bharat Heavy Electrical Ltd, Thermax Ltd and Lindsay International, Alstom Projects Ltd. In the first nine months by December in FY 2010-11, the company reported a total revenue of Rs 457.02 crores and net profit after tax Rs 36.92 crores, sources said.
In FY 2009-10, the company reported a revenue of Rs 425.15 crores and net profit after tax of Rs 34.34 crores, against a revenue of Rs 371.10 crores and a net profit after tax of Rs 14.14 crores in FY 2008-09. Axis Bank Limited and Avendus Capital Pvt Ltd are book running lead managers to the issue.